GBP/USD Price Forecast – British pound slumps on Friday

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Updated: Sep 1, 2018, 05:22 UTC

The British pound slumped during the trading session on Friday, as the fears of a “no deal Brexit” have creep back into the marketplace. Quite frankly, this looks like manipulation, but I think at this point there is plenty of support underneath just waiting to get involved. If we do break down, I think the 1.2880 level will be a very interesting place to watch because it was where the impulsive move started. If we were to break down below that candle, that would be catastrophic for the uptrend.

The British pound has slumped during trading on Friday, as reports came out that somebody in France suggested that perhaps there wasn’t going to be a deal. We see this story before, and quite often what happens is some volatility reenters the market, and then the next thing you know good news comes across the wires and we turn right back around. I think at this point you need to look at a pullback as potential value, especially near the beginning of the impulsive candles that were formed earlier in the week, near the 1.2880 level. If we break down below that impulsive candle, then that would be very negative in the market will probably go looking towards 1.2750 level.

If we can break above the 1.3040 level, then it would be a fresh, new high, which of course is a very bullish signal. At this point, I’m not willing to start shorting this market, but I recognize that you’re going to have to approach buying this pair with extreme caution. Perhaps part of the selling is the fact that we are going into the weekend, and almost anything can happen. Markets are becoming more volatile due to fear yet again.

GBP/USD Video 03.09.18

About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.